Schneider Electric's Five Predictions for UK Energy in 2026

The turn of a new year is a time for both reflection and prognostication, looking back at the events of the year gone by while considering how the future will pan out.

Schneider Electric, the French energy management giant, has kicked off 2026 on the front foot by making a set of predictions for how the energy transition will unfurl across the next 12 months.

These predictions are particularly related to the UK, where Schneider has a significant corporate footprint. Looking ahead, the company has compiled a list of five of the energy trends it believes will come to define the UK’s 2026 as the country pushes toward its short-term 2030 net zero goals.

By 2030, it is expected that the UK’s net zero economy could be worth up to £1tn (US$1.34tn), which, incredibly, is around a third of the current national economy.

Schneider expects that this year will be the one in which the pace of digital infrastructure growth and sustainable technology adoption really presses on the throttle.

The company’s President for the UK and Ireland, Kelly Becker, believes that the interplay between electrification, digitalisation and sustainability this year are going to "shape a new era of industrial competitiveness".

“Electrification is pivotal, but businesses need long-term stability and policy clarity to make investment decisions,” she says.

So, what are Schneider's five big predictions for 2026?

1. Water scarcity and the push for future-proofing

The company warns that increasing water shortages could become a decisive industrial constraint.

After the driest start to a year in nearly four decades in 2025, industries from manufacturing to data centres face mounting risk from water scarcity.

"Increased demand and climate pressures are driving a need for smarter water management," Kelly explains.

The rise of AI-powered data centres, many adopting liquid cooling systems, is compounding the strain on local supplies, particularly in the Thames Water region.

In response, Schneider predicts a pivot toward digital water management technologies and software-defined automation, which shifts system intelligence to the software layer.

This digital flexibility allows for faster, more efficient upgrades even in plants constrained by ageing infrastructure.

The outcome, Kelly argues, could be “a more resilient, future-proof industrial base” better able to withstand climate and resource pressures.

2. The rapid growth of AI infrastructure

The second major trend is the extraordinary expansion of data and AI infrastructure.

With almost 100 new data centres planned by 2030, the UK faces its fastest-ever period of digital construction.

Many are concentrated in Scotland, thanks to that region’s abundant renewable energy potential.

Schneider forecasts data centres could add up to 71TWh of additional demand over the next 25 years. That level of consumption underscores how essential diversified, distributed power sources – from microgrids to battery storage – will become in balancing future demand.

For Kelly, these kinds of shifts could help to "stimulate local economies while pushing clean energy innovation to the forefront of industrial growth".

3. The electrification of transport will stall

Despite momentum in clean energy, Schneider sees the electrification of transport hubs as a lagging area.

Domestic transport remains responsible for nearly 30% of the UK’s harmful emissions, making port and airport electrification vital to decarbonisation.

Schneider is already working with several ports to develop “green shipping corridors” and renewable charging infrastructure. Still, progress has been uneven of late. 

“Local authorities need clearer national direction,” Kelly suggests.

Schneider expects some persistent obstacles like accessing grid connections and planning permission to delay progress again in 2026.

4. The power of electrification and digitalisation

The UK Government’s 2025 Industrial Strategy acknowledged energy costs as a barrier to competitiveness.

In 2026, Schneider expects this to translate into a wave of measures supporting energy-intensive industries, helped by National Grid’s £35bn (US$44.5bn) investment in major grid upgrades.

The company sees dual trends of electrification and digitalisation transforming how factories operate.

From software-defined automation to industrial AI and edge computing, these tools promise measurable efficiency gains.

Kelly believes that these two pillars can be "the twin engines of UK industrial growth".

5. Smart buildings will take centre stage

Buildings, responsible for around a quarter of UK emissions, are next in line for a digital overhaul.

Schneider predicts a major wave of retrofits and smart energy management systems in 2026.

AI will increasingly optimise heating, lighting and air quality in commercial and public buildings, while IoT-enabled sensors allow operators to track efficiency minute by minute.

This digital approach, the company notes, could save the public sector an estimated £650m per year by 2037.

“The future of UK buildings will be intelligent, adaptable and electrified,” Kelly says. “Digitalisation is no longer optional – it’s essential.”

From power grids to ports, Schneider’s latest outlook frames 2026 as a turning point in the UK’s energy journey.

The challenge now is matching technological momentum with the policy clarity and infrastructure investment needed to make that transformation stick.